Wyden Probes Appearance of Republican Collusion in Lawsuits Over Tax Return Leaks

Wyden Probes Appearance of Republican Collusion in Lawsuits Over Tax Return Leaks

Two Lawsuits by Top Republicans Appear Coordinated with Treasury's Recent Decision to Terminate Contracts with Firm that Employed the Contractor Who Leaked Thousands of Tax Records During Trump's First Term

Washington, D.C. - Senate Finance Committee Ranking Member Ron Wyden, D-Ore., questioned Treasury Secretary Scott Bessent today over the appearance of possible collusion between the Treasury Department and wealthy Republicans suing over leaks of confidential tax data that occurred several years ago.

In late January, the Treasury Department announced that it had canceled all contracts it held with Booz Allen because the firm had employed an IRS contractor named Charles Littlejohn who leaked several hundred thousand tax records including Donald Trump's between 2018 and 2020, when Trump was president and the IRS was run by his nominee. Days after the Treasury's announcement, Trump sued the IRS and Treasury for $10 billion over the leak of his tax records. Senator Rick Scott (R-Fla.), whose tax records were also leaked, filed suit against Booz Allen last month and also cited Treasury's cancellation of the firm's contracts in his lawsuit.

The statute of limitations in cases involving the leak of tax data is typically two years. The leak of Trump's and Senator Scott's tax returns took place between six and eight years ago.

"The fact that another prominent victim of Mr. Littlejohn's crimes is using the Treasury's contract cancellation as evidence for crimes committed six and eight years ago only further raises the specter that Treasury's is taking actions intended to benefit highly influential and wealthy members of the Republican party," Senator Wyden wrote in a letter to Secretary Bessent.

Senators Wyden and Elizabeth Warren, D-Mass., first questioned Secretary Bessent and then-Attorney General Pam Bondi over Trump's lawsuit in early February. Bessent failed to answer their questions and Bondi provided no response at all. Senator Wyden and Democratic Leader Chuck Schumer, D-N.Y., also introduced legislation called the Stop Presidential Embezzlement Act that would block any financial benefit to Donald Trump resulting from his $10 billion lawsuit

The questions in Senator Wyden's new letter to Secretary Bessent included the following: whether the Treasury Department's cancellation of Booz Allen contracts was timed in anticipation of Trump's lawsuit; whether there has been any coordination between Treasury, the IRS, and anyone representing Trump and/or Senator Scott regarding their lawsuits; and whether the Treasury Department is preparing to fight or recommend settling Trump's lawsuit.

The text of the letter is available online and below.

Dear Secretary Bessent,

On February 3, 2026, I sent you a letter asking a series of questions related to President Trump's lawsuit against the Internal Revenue Service (IRS) and the Department of Treasury's (Treasury) near-contemporaneous cancellation of all contracts with Booz Allen Hamilton.

On February 24, 2026, your department responded by deferring to the Department of Justice (DOJ). While my original letter was addressed to both the DOJ and Treasury, I believe that Treasury is in the best position to answer several of the questions posed by the previous letter.

Indeed, some of the questions below are wholly separate from any litigation proceeding and the Treasury should have all the information necessary to respond with substantive answers.

Furthermore, it has been reported that Senator Rick Scott of Florida has filed a suit against Booz Allen Hamilton over the same incident over which President Trump has filed suit. In his suit, Sen. Scott explicitly cites Treasury's decision to terminate contracts with Booz Allen as proof that they are liable for the leaking of tax returns by Mr. Littlejohn. The fact that another prominent victim of Mr. Littlejohn's crimes is using the Treasury's contract cancellation as evidence for crimes committed six and eight years ago only further raises the concern that Treasury is taking actions intended to benefit highly influential and wealthy members of the Republican party. In order to understand the Treasury Department's role in this litigation and related matters, please respond with itemized answers to the questions below no later than April 30, 2026.

1. Does the Treasury Department and IRS intend to recommend the DOJ challenge President Trump, his family, and his business's demands for the payment of damages?
2. Does the Treasury Department and/or IRS intend to advise the DOJ to enter into a settlement agreement with President Trump, his family, and business? If so, what would be the estimated value of the settlement offer?
3. What is the position of the Treasury Department and the Department of Justice on whether Administrator Bisignano can represent the IRS given his alleged title of Chief Executive Officer at the IRS?
4. Have you or anyone else at Treasury, IRS, or DOJ had any discussions with President Trump or any of his representatives regarding the lawsuit or any potential settlement? If so, explain.
5. 1. Have you or anyone else at Treasury, IRS, or DOJ had any discussions with Sen. Scott or any of his representatives regarding his lawsuit? If so, explain.
6. If the President or White House staff directed Treasury's or DOJ's actions in the lawsuit (e.g., to settle), how would Treasury or DOJ respond?
7. Provide all communications between or among Treasury, IRS, and the White House related to the disclosure of President Trump's tax returns, or those of his family or businesses.
8. 1. Provide all communications between or among Treasury, IRS, the White House, and Rick Scott in his personal capacity and/or his capacity as United States Senator related to the disclosure of Sen Scott's tax returns, or those of his family or business.
9. Provide all communications between or among Treasury, IRS, and the White House related to the Treasury Department's decision to cancel its contracts with Booz Allen.
10. 1. Please describe why the Treasury Department waited until January of 2026 to take action on incidents that occurred in 2018 and 2020? Was the timing influenced by the filing or anticipated filing of the President's lawsuit?
    2. 1. Was the timing influenced by the filing or anticipated filing of any other lawsuit against either Booz Allen or the IRS? If so, whose suit?
    3. Please provide a list of all Treasury staff or other Administration personnel involved in the decision to terminate Booz Allen's contracts.
    4. Provide copies of all 31 contracts between Booz Allen Hamilton and the Treasury Department.
11. Provide all communications between or among Treasury, IRS, DOJ and the White House related to President Trump's lawsuit against the Department filed January 29, 2026.
12. 1. Provide all communications between or among Treasury, IRS, DOJ, the White House, and Rick Scott in his personal capacity and/or his capacity as United States Senator related to Sen. Scott's lawsuit against Booz Allen Hamilton.
13. Have you, or anyone else at Treasury, IRS, DOJ had any discussions with other victims of Mr. Littlejohn's crimes regarding any potential lawsuits, settlements, or the cancellation of contracts with Booz Allen Hamilton either before or after January 26, 2026?
14. 1. If so, please describe each instance in which such communications occurred as well as a description of what was discussed, including who those conversations involved and their dates.
15. In Treasury's press release announcing the cancellation of the Booze Allen's contracts, you stated: Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service.
16. 1. Please provide all supporting evidence used to make this determination.

Sincerely,

Ron Wyden

Ranking Member, Committee on Finance

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